📢 Coming Out of the Cave: Market Insights from the Best Ever Conference

Dear Investors,

Last week, we attended the Best Ever Conference in Salt Lake City—a gathering of some of the sharpest minds in commercial real estate. The theme? Things have been tough, but they’re getting better.

It’s no secret that the last couple of years have been challenging. Interest rate hikes, frozen deal flow, and a chasm between buyer and seller expectations have made transactions sluggish. But as we talked with investors, operators, and economists, a cautious optimism is emerging. Deals are getting done. Capital is loosening up. And for those who have weathered the storm, opportunities are beginning to resurface.

Affordability Gap: Renters vs. Homeowners

One of the biggest takeaways came from Marcus & Millichap, which highlighted the growing affordability gap between renting and owning. Nationally:

🏡 Average Monthly Mortgage Payment: $3,018

🏢 Average Monthly Rent: $1,831

That’s a 65% difference, making homeownership increasingly out of reach for many Americans. This affordability gap continues to fuel strong rental demand, which is great news for multifamily investors.

Even more telling—in 2011, 55% of homebuyers qualified for a loan. Today, only 27% of Americans qualify for a mortgage on a median-priced home. That means fewer people are able to transition into homeownership, further solidifying the renter pool.

What This Means for Investors

✔ Stabilized assets with predictable cash flow remain a smart bet.

✔ Rent growth projections remain strong in markets with high affordability gaps.

✔ Distressed deals are coming, and those with dry powder will be in a prime position to take advantage.

🎙️ Podcast Feature: Zen and the Art of Real Estate Investing

We recently had the opportunity to share our insights on the podcast Zen and the Art of Real Estate Investing with Jonathan Greene. Nate and Troy sat down to discuss how we navigate today’s real estate landscape, why we focus on low-risk, stabilized assets, and how our Missional approach to investing makes a difference.

🎧 Listen to the episode here: Zen and the Art of Real Estate Investing - Episode 224

Final Thoughts

The market isn’t fully out of the cave yet, but the light is getting brighter. Smart investors are preparing now—positioning themselves for the next wave of opportunity.

If you’re looking to deploy capital into high-quality, cash-flowing real estate, we’d love to connect.

📩 Reply to this email to schedule a call.

Here’s to a strong year ahead!

The Missional Capital Group Team

www.missional.group